Money from the many: options for food businesses

Crowdfunding Securities Donations No-Interest Loans In-kind Pre-pay Description Equity investment or loan Contribution with Small loans without Capital from pre- promising an additional acknowledgement and interest payments for store return giveaway credits

Examples CircleUp , Crowdfunder Zip Credibles AgFunder Direct Public Offering, DPO Barnraiser

Typical listings Startups Creative projects Small businesses Local food businesses Startups

Who can invest? Accredited investors only. Everybody Everybody Everybody DPO: everyone within state (who eats the products)

How does the business Dividends, or cash when No pay back, but Cash. Principal only, over Products, often with extra pay back? liquidity event happens incentives (e.g. T-Shirt), or 1-3 years. store credits for larger (acquisition, IPO) launched products (tech) funding amounts.

Focus/share of funds CircleUp: 40% Kickstarter: 4% Kiva Zip: 26% Credibles: 100% food and ag businesses Crowdfunder: 0% Barnraiser: 100% AgFunder: 100%

Campaign duration 2-3 months Up to 2 months Kiva Zip: 6-8 weeks Ongoing Campaigns have preview status before No repeats Rarely repeats (After capital raise, use as loyalty launch program)

Typical amounts raised $50,000 - $500,000 $4,000 - $40,000 $2,500 - $10,000 $5,000 - $50,000 for food businesses DPO: $100K-$500K

Fees CircleUp: $500 + Investm 9%-10% Currently waived by Free signup and app Banking Commission PayPal 5% payment processing AgFunder: 5% Indiegogo: up to 18% DPO: $15,000-$25,000

Comments Driven by valuations. Kickstarter & Barnraiser Kiva Zip Lenders need to Credibles also offers no- Post JOBS act, this option is are all-or-nothing, no be supported by a fee gift cards still in its infancy. partial funding “trustee”

Status: 2014 and 2015 slowmoneynorcal.org Sources: company information